France's Macron to reshuffle government after parliament win

  • France's Macron to reshuffle government after parliament win

France's Macron to reshuffle government after parliament win

The election saw a record number of women voted into parliament, due largely to Macron's decision to field a gender-balanced candidate list.

France's 10-year government bond yield edged back towards seven-month lows around 0.58 percent hit last week after a first round of parliamentary elections pointed to a strong showing for Macron's fledgling party.

Victory for Macron, France's youngest leader since Napoleon, marks the routing of the old political class. Some of them previously had local political experience, but many are newcomers to politics.

Sunday's high abstention rate means Macron will also have to tread carefully with reforms in a country with muscular trade unions and a history of street protests that have forced many a government to dilute new legislation.

Since Mr Macron's Republic on the Move! party won an absolute majority in the 577-seat National Assembly, Mr Castaner said the government reshuffle would be "technical and not far-reaching".

The Republicans and their conservative allies will form the largest opposition bloc in parliament with 131 seats, while the far-right National Front won eight. His government is expected to pass its first set of measures during a special parliamentary session starting on June 27 - laws to strengthen security, improve ethics in politics and reform France's restrictive labor laws.

The election results indicate Macron's party will be a formidable force in French politics, especially as the more traditional conservative and socialist parties lost several seats and will find it hard to form a competing block against La République en Marche.

The gap between French and German bond yields - an important gauge of risk appetite - had widened sharply heading into those elections but has since tightened as Macron's election as president and growing expectations that his new party would perform well in the parliamentary elections lifted investor sentiment.

Le Pen on Monday praised Sunday's vote as "historic" result but denounced an "anti-democratic voting system" that she says doesn't represent the "real weight" of her far-right party in the country. The Stoxx 600 is up 8.4 percent this year after being up as much as 9.7 percent in May.

"We're worth at least 80 (seats) in my opinion, given the energy we will use to promote our views", Le Pen told a news conference.